B. Supposed now that you believe that Core's new computer chip will rival Pentel's, resulting in higher growth in the near future. Your new estimate is for a 5 year period of 30% annual growth followed by a return to the historical growth rate of 10%. Under these new assumptions, what is the value of the stock using the two stage dividend growth model? Calculate this price both manually and using the FAME_TwoStageValue function.

The common stock and debt of northern sludge are valued at $65 million and $35 million, respectively. investors currently require a return of 15.9% on the common stock and a return of 7.8% on the debt. if northern sludge issues an additional $14 million of common stock and uses this money to retire debt, what happens to the expected return on the stock? assume that the change in capital structure does not affect the interest rate on northern’s debt and that there are no taxes.